CoinSignals

Hyperliquid continues to outperform the broader market downturn, posting another strong gain over the past 24 hours.

After falling to a new nine month low below $75,000, Bitcoin rebounded over the last day but failed to break above $79,000 and is now trading just under that level.

Aside from Hyperliquid and CC, which both recorded notable gains during the same period, most large cap altcoins remain sluggish.

Bitcoin Capped at $79K

It has been a difficult week for the leading cryptocurrency, with little indication early on of how severe conditions would become. Last Wednesday, Bitcoin briefly touched $90,000 before reversing course and beginning a steady decline after the US Federal Reserve paused interest rate cuts.

Rising geopolitical tensions in the Middle East were blamed for Thursday’s sharp sell off, which pushed Bitcoin down to a multi month low of $81,000. The price rebounded on Friday and early Saturday to $84,000 as precious metals sold off, but weakness returned over the weekend.

In an unusual move for a Saturday afternoon, Bitcoin dropped sharply from $83,000 to $76,000. Although it recovered somewhat on Sunday, it fell again on Monday morning to below $75,000, marking its lowest level since April of last year.

Bitcoin later bounced and tested the $79,000 level, where it faced resistance and is now trading below it. Its market capitalization has declined to $1.56 trillion, while its dominance over altcoins on CoinGecko has risen to 57.7 percent.

HYPE Leads the Market

Most large cap altcoins followed Bitcoin lower over the past several days. Ethereum was hit particularly hard, sliding from above $3,000 to near $2,100. While it has since rebounded, it continues to struggle below $2,300.

XRP, TRX, and XLM are slightly down, while SOL, BNB, ADA, and BCH posted modest gains. Hyperliquid once again led the market, jumping 19 percent to $37. CC also stood out, climbing 8 percent to trade above $0.19.

The total cryptocurrency market capitalization has recovered about $70 billion from yesterday’s low and now stands above $2.7 trillion on CoinGecko.

Tom Lee brushed aside Ethereum’s recent sell off, arguing that the asset’s declining price does not reflect its underlying fundamentals. BitMine added 41,788 ETH last week as Lee described the pullback as an attractive opportunity amid rising on chain activity.

Ethereum’s price dropped sharply over the weekend, falling from about $2,900 to nearly $2,100 as selling pressure increased. Although prices have stabilized slightly as of Tuesday, ETH is still down more than 26 percent over the past month.

Despite fading investor sentiment, Fundstrat’s head of research Tom Lee said Ethereum’s weakness stems from a lack of leverage in the market and a strong rally in gold rather than any deterioration in the network’s fundamentals.

Aggressive Buying Spree

BitMine, one of the largest Ethereum treasury firms, has continued accumulating ETH during the recent downturn. Lee, who also serves as the company’s chairman, said current prices are appealing given what he views as improving network strength.

He explained that BitMine has been steadily purchasing Ethereum because the company believes the recent decline offers value in light of strengthening fundamentals. In his view, Ethereum’s price does not accurately reflect its high utility or its role in shaping the future of finance.

Ethereum’s sharp price drop over the past month comes even as daily transactions hit a record 2.5 million and active addresses climbed to an all time high of one million per day in 2026. Lee noted that in previous crypto downturns, on chain activity typically declined. He argued that the current price weakness appears driven by external factors such as limited leverage and rising precious metals prices rather than fundamental issues.

These remarks followed reports suggesting BitMine was carrying more than $6.9 billion in unrealized losses on its Ethereum holdings.

No Pressure To Sell ETH

As of February 2, BitMine reported total crypto and investment assets worth $10.7 billion. This includes 4,285,125 ETH, 193 Bitcoin, a $200 million stake in Beast Industries linked to MrBeast, a $19 million stake in Eightco Holdings, and $586 million in cash.

The company said its balance sheet consists of roughly $10.1 billion in crypto and investments. Its Ethereum holdings generate staking rewards at a composite staking rate of 2.81 percent, while cash holdings earn money market yields ranging from 3.5 to 3.9 percent.

BitMine has no outstanding debt, which Lee said allows the firm to weather crypto market volatility while generating recurring income. He added that there is no pressure to sell Ethereum since there are no debt covenants or related constraints. As of February 1, the company had staked 2,897,459 ETH valued at approximately $6.7 billion. This reflects an increase of 888,192 ETH over the past week and represents part of its total Ethereum holdings.

The amount of staked ETH has risen steadily from 408,627 ETH at the end of December 2024. BitMine said it is currently working with three staking providers as it prepares to launch its commercial MAVAN validator network in 2026. According to Lee, the company acquired an additional 41,788 ETH over the most recent week, continuing a pattern of consistent weekly purchases throughout January.

The world’s largest corporate holder of Bitcoin, Strategy, has once again increased its position, continuing its long-term accumulation strategy despite recent market volatility. The latest purchase was executed prior to the sharp market declines on Thursday and Saturday and involved acquiring 855 BTC at an average price of nearly $88,000 per coin. The total expenditure for this buy was approximately $75.3 million, bringing Strategy’s total Bitcoin holdings to 713,502 BTC.

The company’s overall Bitcoin stash was acquired for around $54.26 billion, with an average cost basis of $76,052 per coin. Given the current market price hovering just below $78,000, Strategy’s unrealized gains have contracted to under $3 billion. This represents a significant reduction from last week, when Bitcoin’s price near $90,000 had pushed paper gains close to $8 billion.

The recent price declines were steep and rapid. On Thursday, Bitcoin dropped to $81,000, initiating a correction that intensified over the weekend. By Saturday, bearish pressure had taken full control of the market, driving the price down to $74,400 earlier today. This drop temporarily put Strategy’s Bitcoin holdings into negative territory for the first time since October 2023, highlighting the risks associated with leveraged accumulation during volatile periods.

The company’s stock has mirrored the broader crypto market weakness. Over the past five days, Strategy’s share price has fallen by more than 6%, reflecting both the impact of declining Bitcoin prices on investor sentiment and the correlation between the firm’s stock performance and its crypto holdings.

Despite the shrinking paper gains and heightened short-term volatility, Strategy appears committed to its accumulation plan, signaling confidence in Bitcoin’s long-term trajectory. The firm’s actions underscore a broader trend among institutional investors who continue to view dips as opportunities to expand their holdings rather than indicators to exit the market.

Bitcoin continued its decline after the Saturday crash, hitting a fresh multi-month low of just over $74,000 on Monday morning. The fall also hit altcoins hard, with Ethereum among the biggest losers and XMR down significantly in the past 24 hours.

Bitcoin Struggles and Partial Recovery

Last Wednesday, Bitcoin briefly tested the $90,000 resistance, but the rally faltered amid the Fed’s pause on rate cuts and rising geopolitical tensions in the Middle East. The correction accelerated, sending BTC to $81,000 on Thursday, then briefly rebounding to $84,000 on Friday. By Saturday, the market lost control, and Bitcoin plunged below $76,000, triggering over $2.5 billion in liquidations. After failing to recover on Sunday, BTC hit $74,400 Monday morning, marking a $15,000 loss in just a few days. Since then, it has recovered slightly to around $78,000, with its market cap at $1.55 trillion and dominance over altcoins at 57.5%.

Altcoins Take Heavy Losses

Ethereum, which traded above $3,000 last Wednesday, fell to around $2,100 before recovering to $2,300, down 5.5% on the day. Monero also dropped to $400. Other major altcoins including XRP, BNB, SOL, DOGE, ADA, BC, LINK, and XLM are all in the red, while Pi Network’s native token touched a new all-time low.

In contrast, MYX saw a strong daily gain of 13.5%, followed by a 10% surge in M. Overall, the total crypto market cap has lost $300 billion since Saturday and $500 billion since last Wednesday, falling to $2.65 trillion.

Fear and uncertainty have surged across crypto social media following panic selling from weak-handed retail traders.

“FUD has taken over social media” after Bitcoin’s 16% drop in the past week, blockchain analytics firm Santiment reported on Monday. The firm noted that the crash was driven by retail selling and added that “markets often move opposite to the crowd’s narratives.” Negative posts about crypto are at their highest since the November 21st crash.

The November 2025 sell-off saw crypto markets fall 19%, with $680 billion exiting the space. The recent decline was smaller but still significant, with a 14% slide and $440 billion leaving the market, pushing prices back to April 2025 lows.

Possibility of a Relief Rally

Santiment suggested that major negative events often trigger relief rallies and noted that early signs hint the current bounce could mirror previous post-FUD recoveries. However, recovery remains limited, with Bitcoin holding near nine-month lows around $78,000 and Ether trading near bear market lows around $2,300.

CryptoQuant analyst Darkfost attributed the downturn to the record October leverage flush, stating that “liquidity destruction in an already uncertain crypto market environment is not conducive to a return of speculation,” which remains a key driver for crypto markets.

Conversely, analyst Sykodelic remained bullish, highlighting that strong manufacturing PMI data points to economic resilience. “We are not in a bear market and will not see a 75% retrace over 10 months. The cycle is gearing up for expansion, not winding down,” he said.

Key Levels to Watch

Analyst Daan Crypto Trades pointed to $74,000 as a critical support level. Sweeps below this point are manageable, but sustained closes under it could signal further downside. He added that higher timeframe analysis shows a bearish shift following the rejection at $98,000 and the recent leg down.

At the time of writing, BTC was trading around $78,500, down 11% on the week and 10% year-to-date.

Digital asset investment products experienced $1.7 billion in outflows last week, effectively reversing year-to-date gains and leaving a net global withdrawal of $1 billion, according to CoinShares. The firm attributes this decline to weakening investor confidence, which has been influenced by a combination of factors, including expectations of a more hawkish US Federal Reserve chair, continued selling by crypto whales linked to the four-year market cycle, and mounting geopolitical risks. Since October 2025, when digital assets reached market highs, total assets under management have dropped by approximately $73 billion as market appetite for cryptocurrencies has waned.

Bitcoin Drives the Outflows

Bitcoin was the main contributor to the outflows, losing $1.32 billion, followed by Ethereum with $308 million, XRP with $43.7 million, and Solana with $31.7 million. Smaller outflows occurred for Sui and Litecoin, amounting to $1.2 million and $0.2 million, respectively. Meanwhile, short Bitcoin funds saw inflows of $14.5 million, increasing their year-to-date assets under management by 8.1 percent, reflecting a growing appetite among investors for hedging strategies against falling prices. Multi-asset funds also faced withdrawals, losing $13.5 million, while Chainlink saw modest inflows of $0.5 million. In addition, products linked to tokenized precious metals drew $15.5 million in inflows, highlighting selective demand for alternative crypto exposure amid broader market declines.

Investor sentiment was largely negative across regions. The United States led with $1.65 billion in outflows, followed by Canada and Sweden with $37.3 million and $18.9 million, respectively. Smaller withdrawals were recorded in the Netherlands, France, and New Zealand. By contrast, Switzerland and Germany attracted inflows of $11 million and $4.3 million, while Brazil, Australia, and Italy recorded minor gains. This pattern suggests uneven global sentiment, with some markets still showing cautious confidence in digital assets.

Heightened Caution and Demand for Downside Protection

Bitcoin’s recent decline pushed it below the $80,000 support level, briefly touching $74,500. Ethereum also came under pressure after the announcement of Kevin Warsh as the next US Federal Reserve chair. The drop triggered liquidations exceeding $2.5 billion in leveraged long positions, exacerbating already strained sentiment amid ongoing ETF outflows. This contributed to Bitcoin posting its fourth consecutive monthly decline, leaving markets generally cautious.

QCP Capital emphasized that $74,500 represents a key level aligned with 2025 cycle lows. Options markets show that investors continue to favor downside protection over bullish bets, though hedging demand is not as extreme as during previous stress episodes. This may suggest that some investors are positioning for a potential near-term base. Despite signs of stabilization, momentum remains weak, limiting upside potential and leaving Bitcoin exposed to further liquidations.

Looking ahead, QCP notes that a drop below $74,000 could push BTC toward prior 2024 trading zones, while reclaiming the $80,000 level could relieve short-term pressure, normalize options markets, and ease volatility. Critical factors to monitor include institutional accumulation, evolving geopolitical risks, and future communications from the Federal Reserve, all of which could influence the trajectory of digital asset prices in the coming weeks.

Raoul Pal argues that Bitcoin’s nearly 40% decline from its all-time high of $126,000 is not evidence of a broken crypto cycle or a failed market, but rather the result of a temporary liquidity squeeze in the United States. With Bitcoin currently trading just above $77,000, the market remains fragile, and many investors are bracing for further volatility. Pal cautions against the prevailing narrative that claims the crypto market is “broken,” calling it a misleading story driven by short-term liquidity disruptions rather than structural flaws in the asset class.

He highlights that Bitcoin and the UBS SaaS Index have shown remarkably similar price patterns recently, which suggests that both assets are reacting to the same underlying macroeconomic factor rather than asset-specific problems. According to Pal, that factor is US liquidity, which has been constrained due to a series of technical and fiscal events. He points to the completion of the US Reverse Repo drain in 2024 and subsequent Treasury General Account (TGA) rebuilds in mid-2025 that were not offset by liquidity injections, resulting in a temporary withdrawal of available capital.

Pal explains that this liquidity shortage has also contributed to weaker-than-expected ISM readings and broader risk-off behavior in financial markets. While global total liquidity usually correlates strongly with Bitcoin and US equities over the long term, he argues that US liquidity is currently the dominant influence, as the US remains the primary source of global capital. Pal notes that global liquidity has started to turn higher this cycle, which should eventually flow through to US liquidity and support risk assets, including Bitcoin.

Long-duration assets like Bitcoin and SaaS equities are particularly affected because they are more sensitive to liquidity conditions. The recent rally in gold, for example, has absorbed marginal liquidity that might otherwise have flowed into riskier assets, leaving insufficient capital to support multiple asset classes simultaneously. Additionally, the ongoing US government shutdown has intensified the liquidity drain, as the Treasury added to the TGA rather than drawing it down, creating what Pal describes as a temporary “air pocket” that placed severe downward pressure on prices.

Despite these short-term challenges, Pal remains optimistic about the near-term outlook. He expects that resolution of the government shutdown will remove the last major liquidity obstacle. Further liquidity support is anticipated through adjustments to the enhanced supplementary leverage ratio (eSLR), partial TGA drawdowns, fiscal stimulus, and eventual rate cuts, all of which should help restore market stability.

Pal also addressed concerns that the market is being weighed down by fears of a more cautious Fed under incoming chair Kevin Warsh. He dismissed claims that Warsh will pursue a hawkish policy stance, calling these narratives outdated and misleading. According to Pal, Warsh’s approach is consistent with supporting rate cuts and economic expansion while maintaining balance sheet stability within reserve constraints.

In conclusion, Pal stresses that Bitcoin’s recent price action reflects macro liquidity conditions rather than any intrinsic failure of the crypto cycle. He remains strongly bullish on Bitcoin and crypto markets for 2026, emphasizing that improving liquidity, regulatory adjustments, and broader market recovery should create a favorable environment for risk assets in the months ahead.

Bitcoin has fallen out of the world’s ten largest assets by market capitalization and now sits in 13th position following a broad sell off across crypto markets.

This marks a sharp reversal from July 2025, when Bitcoin surged above $119,000 and climbed ahead of silver and tech giant Alphabet in global rankings.

A Notable Shift in Market Standing

Figures from CompaniesMarketCap dated February 2, 2026, place Bitcoin’s market value at roughly $1.55 trillion. At this level, it now trails assets such as silver, valued at about $4.62 trillion, as well as major corporations including Tesla and Broadcom.

Just over six months ago, Bitcoin’s market cap stood near $2.35 trillion, earning it the sixth spot globally and allowing it to overtake both silver and Alphabet. The recent drop reflects sustained pressure on crypto prices alongside unusual volatility in commodity markets.

Bitcoin fell below $75,000 on February 2, its lowest level since April 2025. Data shows BTC is down more than 11% over the past week and over 16% in the last two weeks. Ethereum has declined even more sharply, falling over 21% in seven days and roughly 25% over the past month, pushing it down to 66th place in overall asset rankings.

The broader crypto market has lost around $500 billion in capitalization since last Wednesday. At the same time, precious metals shed an estimated $10 trillion. Even after recent volatility, silver alone remains larger than Bitcoin and the entire altcoin market combined, rebounding to around $87 per ounce after falling into the low $70s from recent highs.

Impact of a Wider Market Repricing

Gold continues to dominate global asset rankings, holding the top spot with a market cap near $33 trillion. Other major assets in the top tier include NVIDIA, Microsoft, Amazon, and Saudi Aramco.

Silver’s position as the third most valuable asset highlights how quickly market dynamics have shifted. Earlier in 2025, Bitcoin briefly surpassed silver during its rally. Now, silver’s valuation is once again nearly three times larger than Bitcoin’s.

Alphabet, which Bitcoin had also overtaken last year, is now ranked fourth globally with a market cap just above $4 trillion, followed by Apple at approximately $3.8 trillion.

The synchronized sell offs across crypto, commodities, and equities suggest the current volatility is part of a broader market adjustment. Investors are watching closely to see whether capital eventually rotates back into cryptocurrencies or continues to favor traditional assets.

Bitcoin fell to its lowest level since April 2025 on Monday as a broad wave of selling hit cryptocurrencies, commodities, and global equity markets at the same time.

The decline pushed crypto deeper into a wider risk off environment, with sharp losses across energy markets, precious metals, and stocks further weakening already fragile investor sentiment.

A Broad Cross Asset Sell Off

Data shared by The Kobeissi Letter showed that the sell off was both aggressive and widespread. Natural gas suffered the steepest drop, plunging 15.5% in a single session.

Assets traditionally viewed as safe havens also came under pressure. Silver slid 8%, while gold dropped 5.5%, erasing more than $10 trillion in combined market value over just three days. U.S. stock futures continued to decline, with Nasdaq 100 futures down 1.8%. In Asia, South Korea’s stock market fell more than 5%, triggering a temporary halt in sell orders on the KOSPI.

Signs of caution had already been building beneath the surface. The Kobeissi Letter noted that the ratio of insider stock sellers to buyers at U.S. listed companies reached 4.8 in January, the highest level since early 2021, suggesting that corporate executives were locking in gains ahead of the downturn.

In crypto markets, Bitcoin dropped below $75,000 to reach a nine month low, while Ethereum fell 10.5%. Analyst Ash Crypto noted that total crypto market capitalization has declined by $700 billion over the past two weeks, with more than $2.5 billion in liquidations recorded on January 31 alone.

Analysts emphasized that the weekend crash was not triggered by a single geopolitical or macroeconomic headline. Instead, it was driven by liquidity stress, where high leverage in unstable markets created sharp price gaps that led to cascading liquidations.

Bitcoin’s Bearish Momentum Continues

Bitcoin was trading near $76,400 at the time of writing, down roughly 2% on the day and nearly 13% over the past week. Over the last two weeks, BTC has lost about 17% and now sits close to 40% below its October 2025 all time high above $126,000. On a yearly basis, the asset is down nearly 24%.

January closed with Bitcoin down more than 10%, marking its fourth consecutive monthly decline. The last time BTC recorded four or more monthly losses in a row was during the 2018 bear market.

Intraday trading over the past 24 hours ranged between roughly $74,500 and just over $79,000, reflecting rising volatility. While Bitcoin has held up better than Ethereum, which is down more than 23% over the past week, its decline continues to weigh heavily on market sentiment due to its size and benchmark role.

The fact that selling pressure has spread across both high risk assets and traditional defensive assets like gold suggests investors are broadly reducing exposure and moving toward cash, likely driven by valuation concerns and growing economic uncertainty.

Bitmine, the crypto focused firm chaired by Fundstrat cofounder Tom Lee, is currently sitting on roughly $6.9 billion in paper losses tied to its Ethereum holdings. The firm owns about $9.2 billion worth of ETH, a sharp decline of more than 41 percent from its original investment of nearly $15.7 billion.

The situation underscores how hard the recent crypto market correction has hit large institutional positions, especially those concentrated in a single asset.

Pressure Mounts on Bitmine’s ETH Position

Data from Dropstab shows Bitmine’s Ethereum exposure shrinking as ETH trades near seven month lows. The broader market sell off has erased around $500 billion from total crypto capitalization in recent days, placing major holders under increased scrutiny.

Discussion around Bitmine’s position intensified on social media, where critics pointed to earlier bullish price targets from Tom Lee, including projections of Bitcoin at $180,000 and Ethereum between $7,000 and $9,000 by late January. With Bitcoin now near $75,000 and ETH around $2,200, some investors argue those forecasts failed to account for shifting market conditions.

Other commentators highlighted liquidity risks, suggesting that exiting such a large ETH position near breakeven would require much higher prices and that any sizable sale could significantly impact the market. These views have fueled broader concerns about how large holders can manage risk during periods of stress.

Liquidations, Whale Activity, and ETH Outlook

Bitmine’s unrealized losses come during a brutal stretch for Ethereum. ETH dropped from above $3,000 earlier in the week to lows near $2,166. CryptoQuant data shows that more than $485 million in ETH long positions were liquidated on January 31 alone.

Ethereum is now down nearly 23 percent over the past week and close to 28 percent over the last month. Trading volume has surged more than 7 percent to above $55 billion in a single day, signaling heightened activity as leverage is flushed from the system.

On chain data paints a mixed picture among large holders. Some whales have been moving ETH to exchanges, including Trend Research, which transferred over 33,000 ETH to Binance to repay Aave loans. At the same time, other institutions have been accumulating through OTC desks, buying more than 30,000 ETH within hours, suggesting disagreement among sophisticated investors about near term price direction.

Lee has previously argued that a major deleveraging event in late 2025 weakened crypto market structure and increased volatility, while maintaining a long term bullish stance on digital assets. For now, Ethereum’s price action shows that strong conviction offers limited protection during broad risk off environments, particularly when leverage and liquidity pressures collide.